Created on

AICACC Examination

Entrance into our program requires that you pass this exam. Good luck!

1 / 20

A low Return on Investment Ratio (ROI) indicates

2 / 20

Journals are also referred to as

3 / 20

What is an engagement letter?

4 / 20

Which of the following statements is correct regarding a shareholder’s right to inspect corporate
books and records? The right

5 / 20

On January 1, the partners' interest in capital, profits, and losses of Studio Partnership were:
Partners      Percentages
Ross             15%
Stone           35%
Taylor          50%
On April 9, Stone sold his entire interest to Taylor. For tax purposes, which of the following statements is
correct regarding Studio's status as a partnership?

6 / 20

Which of the following financial instruments may be considered a derivative financial instrument?

7 / 20

Corbet Co. purchased a copyright near the beginning of the current year from an author for $20,000.
The legal life of the copyright is equivalent to the life of the author plus 50 years. Corbet expects to
sell the book for five years. What amount should Corbet report as amortization expense related to the
copyright at the end of the current year?

8 / 20

Goll Co. has a 25% interest in the common stock of Rose Co. and an 18% interest in the common
stock of Jave Co. Neither investment gives Goll the ability to exercise significant influence over either
company's operating and financial policies. Which of the two investments should Goll account for
using the equity method?

9 / 20

Smile, Inc. purchased a computer on May 1, for $12,000 with an estimated salvage value of $1,500
and a 3-year life. What is the depreciation expense for the year ended December 31, using the
double-declining method of depreciation?

10 / 20

Which of the following is an essential element of the audit trail in an electronic data interchange (EDI)

11 / 20

Darv Co. had a current ratio of 3-to-1 and a quick ratio of 1-to-1. Current liabilities were $322,000.
What was the total amount for inventory and prepaid expenses?

12 / 20

A company sells DVD players for $200 per unit. The players have a unit variable cost of $160. The
company estimates that it will sell one home entertainment system for every four DVD players sold.
Home entertainment systems have a unit variable cost of $460 and sell for $600 per unit. The
company's fixed costs are $90,000. Assuming that the sales mix estimate is correct, how many DVD
players need to be sold for the company to break even?

13 / 20

Star Co. is a retail store specializing in contemporary furniture. The following information is taken from
Star's June budget:
Sales $540,000
Cost of goods sold 300,000
Merchandise inventory–June 1 150,000
Merchandise inventory–June 30 180,000
Accounts payable for purchases–June 1 85,000
Accounts payable for purchases–June 30 75,000
What amount should Star budget for cash disbursements for June purchases?

14 / 20

What is an opportunity cost?

15 / 20

The expected selling price for a new product is $19.00. Management's goal is to obtain a 20%
contribution margin on all sales. If the new product has variable selling and distribution costs of $3.00
per unit, what is the product's target variable manufacturing cost?

16 / 20

What is a selling price?

17 / 20

A 20% target contribution margin is set for Duct, which is a new product with the following unit costs:
Manufacturing costs

Variable $12
Fixed 8

Selling & admin. Costs

Variable $3
Fixed 5

What is Duct's target selling price?

18 / 20

Which of the following factors most likely would be considered an inherent limitation to an entity's
internal control?

19 / 20

Describe risk analysis

20 / 20

A compilation of financial statements in accordance with Statements on Standards for Accounting and
Review Services is limited to presenting

Your score is

The average score is 0%